The Cassil National Bank charges its customers $0.50 per transaction for using the ATM machine, if their deposit balance is below $500. It charges $0.25 per transaction for using the ATM if their deposit balance is between $500 and $1,000. If its customers' deposit balance is over $1,000, there is no charge for using the ATM machine. This is an example of:

A. an interchange fee.

B. an independent pricing schedule.

C. a conditional pricing schedule.

D. a surcharge fee.

E. None of the options are correct

Question

Freddy Hunt

Business

1 July, 14:46

The Cassil National Bank charges its customers $0.50 per transaction for using the ATM machine, if their deposit balance is below $500. It charges $0.25 per transaction for using the ATM if their deposit balance is between $500 and $1,000. If its customers' deposit balance is over $1,000, there is no charge for using the ATM machine. This is an example of:

A. an interchange fee.

B. an independent pricing schedule.

C. a conditional pricing schedule.

D. a surcharge fee.

E. None of the options are correct

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Answers (1)

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Weeks · Answer 1

The correct answer is letter "C": a conditional pricing schedule.

Explanation:

A conditional pricing schedule is a pricing strategy in which what is charged to the customer depends on variable factors such as the size of the purchase or the type of products acquired. In banking, financial institutions tend to use this strategy usually according to the balance account holders have. The higher the balance the higher interest rates they pay to customers or the smaller fees they charge to promote clients have more money in the bank so the financial institutions can use those funds to invest.